Digital Commons Network^™

Patently Risky: Framing, Innovation And Entrepreneurial Preferences, Elizabeth Hoffman, David L. Schwartz, Matthew L. Spitzer, Eric L. Talley

Faculty Scholarship

An emerging common wisdom holds that courts have made it “too hard” to obtain patent protection in critical industries. The origin of this criticism dates back at least as far as the United States Supreme Court’s 2012 landmark opinion in Mayo Collaborative Services v. Prometheus Laboratories, Inc. which (the argument goes) triggered a chain reaction of judicial opinions rendering patent rights progressively more difficult to secure. Two years later, the Supreme Court decided Alice Corp. v. CLS Bank, another opinion widely viewed as restricting patent rights. And, barely three years after Mayo, the Federal Circuit cited it in …

Some Issues On The Law Of Direct Damages (Us And Uk), Victor P. Goldberg

Faculty Scholarship

When a contract is breached, both U.S. and U.K. law provide that the non-breaching party should be made whole. The Uniform Commercial Code (“UCC”) provides that “[t]he remedies provided by this Act shall be liberally administered to the end that the aggrieved party may be put in as good a position as if the other party had fully performed.” The English version, going back to Robinson v. Harman, is “that where a party sustains a loss by reason of breach of contract, he is, so far as money can do it, to be placed in the same situation, with …

Why Financial Regulation Keeps Falling Short, Dan Awrey, Kathryn Judge

Faculty Scholarship

This article argues that there is a fundamental mismatch between the nature of finance and current approaches to financial regulation. Today’s financial system is a dynamic and complex ecosystem. For these and other reasons, policy makers and market actors regularly have only a fraction of the information that may be pertinent to decisions they are making. The processes governing financial regulation, however, implicitly assume a high degree of knowability, stability, and predictability. Through two case studies and other examples, this article examines how this mismatch undermines financial stability and other policy aims. This examination further reveals that the procedural rules …

Preventing The Bad From Getting Worse: The End Of The World (Trade Organization) As We Know It?, Bernard Hoekman, Petros C. Mavroidis

Faculty Scholarship

Recent survey evidence and proposals made in long-running negotiations to improve WTO dispute settlement procedures illustrate that many stakeholders believe the system needs improvement. The Appellate Body crisis could have been avoided but for the use of consensus as WTO working practice. Resolving the crisis should prove possible because the matter mostly concerns a small number of more powerful WTO members. We make several proposals to revitalize the WTO appellate function but argue that unless the WTO becomes a locus for new rulemaking, re-establishing the appellate function will not prevent a steady decline in the salience of the organization. A …

A Mission Statement For Mutual Funds In Shareholder Litigation, Sean J. Griffith, Dorothy S. Lund

Faculty Scholarship

This Article analyzes the conduct of mutual funds in shareholder litigation. We begin by reviewing the basic forms of shareholder litigation and the benefits such claims might offer mutual fund investors. We then investigate, through an in-depth docket review, whether and how the ten largest mutual funds participate in shareholder litigation. We find that although shareholder suits offer potential benefits, the largest mutual funds have essentially forfeited their use of litigation. This finding is particularly striking given that index funds and other long-term oriented mutual funds generally cannot sell their shares when they are dissatisfied with company performance, leaving them …

Affh And The Challenge Of Reparations In The Administrative State, Olatunde C.A. Johnson

Faculty Scholarship

America’s summer of racial reckoning has led to increased attention on proposals to provide reparations to Black Americans.

Reparations discussions typically concern securing compensation for slavery. The racial harm caused by the administrative state is generally less of a focus, even though racial exclusions and discrimination in 20th-century administrative programs helped shape contemporary disparities in housing, wealth, and opportunity that endure today. A provision of federal housing law provides a window into the roots of racial harm enacted through administrative state programs, as well as the limits of administrative law as a tool for repairing this harm.

All Faiths & None: A Guide To Protecting Religious Liberty For Everyone, Elizabeth Reiner Platt, Katherine M. Franke, Keisha E. Mckenzie, Katharine Rhodes Henderson

Faculty Scholarship

Religious liberty rights have been immeasurably damaged over the past several years — often in the name of protecting religious liberty.

Government officials have embraced Islamophobic policies and rhetoric; shut the door on refugees fleeing religious persecution; elevated the religious rights of their political allies over the rights — religious and otherwise — of other communities; used religion as a tool of economic deregulation; and denigrated the beliefs of religious minorities, atheists, and religious progressives.

To achieve true freedom for those of all faiths and none, a complete overhaul of religious liberty policy, and a new understanding of what this …

Democracy And Decolonization: How India Was Made, Madhav Khosla

Faculty Scholarship

For some years, the endurance of constitutional democracy in India has been a puzzle for political scientists and public law scholars. The creation of self-government on Indian soil challenged Western political theory and history, and its survival in atypical and unusual circumstances has mystified students of comparative politics. If the conventional wisdom is believed, self-rule in a country with major levels of poverty, illiteracy, and diversity should neither have been instituted nor sustained. India has managed to hold elections with remarkable regularity, and it boasts of a constitutional culture where conflict has, for the most part, been articulated through legal …

Decarcerating New York City: Lessons From A Pandemic, Nicole Smith Futrell

Faculty Scholarship

Over the last decade, long before the sweeping impact of COVID-19, the criminal legal system in New York City has been on a halting path toward decarceration. Set against the national backdrop of declining crime rates and a reckoning with the economic, social, and racial costs of mass criminalization and incarceration, elected officials in New York City and State have acknowledged that a shift toward reducing the number of people held in New York City jails is long overdue. Particular attention has been focused on Rikers Island, the notoriously violent, sprawling jail complex, which has been regarded as one of …

Intellectual Property Law And Redressive Autonomy, Shyamkrishna Balganesh

Faculty Scholarship

Intellectual property law remains a body of private law, but for reasons that transcend its reliance on ideas and concepts from the common law of property and tort. This essay argues that the connection between forms of intellectual property law and private law is rooted in a form of autonomy that characterizes private law regimes — known as “redressive autonomy.” It shows how a strong commitment to redressive autonomy undergirds the unique right–duty structure of intellectual property, informs intellectual property’s central doctrines, and injects an additional layer of normative complexity into its functioning.

Agency Problems And Organizational Costs In Slave-Run Business, Barbara Abatino, Giuseppe Dari-Mattiacci

Faculty Scholarship

This chapter examines the internal economic organization of the peculium servi communis — that is, of separate business assets assigned to a slave — and its (external) relationships with creditors. Literary, legal, and epigraphic evidence points predominantly to businesses of small or medium size, suggesting that there must have been some constraints to growth. We identify both agency problems arising within the business organization (governance problems) and agency problems arising between the business organization and its creditors (limited access to credit). We suggest that, although the praetorian remedies had a remarkable mitigating effect, agency problems operated as a constraint to …

Legislatures, Executives And Political Control Of Government, Gillian E. Metzger

Faculty Scholarship

This chapter examines how political control over government is exercised today in the UK, the US, and France, focusing on control of the executive branch by the legislature and control of the administrative executive by the political executive. These three jurisdictions were chosen because they are paradigmatic examples of different political regimes: parliamentarism, separation of powers presidentialism, and semi-presidentialism. In theory, these different institutional structures should affect how political control is understood and wielded. In the traditional Westminster parliamentary model, for example, the government is formed from the leadership of the majority party in Parliament and it is the government …

Copyright And Economic Viability: Evidence From The Music Industry, Kristelia A. Garcia, James Hicks, Justin Mccrary

Faculty Scholarship

Copyright provides a long term of legal excludability, ostensibly to encourage the production of new creative works. How long this term should last, and the extent to which current law aligns with the economic incentives of copyright owners, has been the subject of vigorous theoretical debate. We investigate the economic viability of content in a major content industry — commercial music — using a novel longitudinal dataset of weekly sales and streaming counts. We find that the typical sound recording has an extremely short commercial half-life — on the order of months, rather than years or decades — but also …

Executive Overreach And Underreach In The Pandemic, Kim Lane Scheppele, David E. Pozen

Faculty Scholarship

The pandemic that convulsed the globe in 2020 was long foretold but still surprising to many. Within a few months of its appearance, COVID-19 became one of the leading causes of death worldwide. Governments struggled at first to comprehend what was happening – and then reacted in very different ways. Most political leaders followed the advice of epidemiologists. Many declared states of emergency. A few pursued autocratic agendas. And some did almost nothing.

During emergencies, constitutional scholars normally worry about executive aggrandizement at the expense of human rights and democratic values. Emergencies often require national executives to act quickly and …

The Eagle Theory, Thomas W. Merrill

Faculty Scholarship

This Article evaluates three interpretations of the Takings Clause capable of generating a regulatory takings doctrine. The first, the Epstein interpretation, puts primary emphasis on what it means to provide “just compensation” for takings; the second, the Penn Central interpretation, centers on what it means to “take” property; the third, which I call the Eagle theory, in honor of Steven Eagle, this year’s Brigham-Kanner prize recipient, focuses on when the government has taken “private property.” The Article argues that the Eagle theory has the most plausible basis in the original understanding of the Takings Clause, rests on a theory about …

Exemplary Legal Writing 2019: Five Recommendations, G. Edward White, Sarah Seo

Faculty Scholarship

In the song “Natalie Cook” from the musical podcast “36 Questions,” a married couple deals with the fallout from the husband’s discovery that his wife is really an individual named Judith, who “built a past / Made up a history / Details that fit this person named / Natalie.” When the husband accuses the wife, “You’re the one who made her up,” Natalie/Judith responds, “It was a bit more collaborative than you’re remembering.”

Mass Digitization Of Chinese Court Decisions: How To Use Text As Data In The Field Of Chinese Law, Benjamin L. Liebman, Margaret Roberts, Rachel E. Stern, Alice Z. Wang

Faculty Scholarship

Since 2014, Chinese courts have placed tens of millions of court judgments online. We analyze the promise and pitfalls of using this new data source, highlighting takeaways for readers facing similar issues using other collections of legal texts. Drawing on 1,058,986 documents from Henan Province, we identify problems with missing data and call on scholars to treat variation in court disclosure rates as an urgent research question. We also outline strategies for learning from a corpus that is vast and incomplete. Using a topic model of administrative litigation in Henan, we complicate conventional wisdom that administrative lawsuits are an extension …

Tech Dominance And The Policeman At The Elbow, Tim Wu

Faculty Scholarship

One school of thought takes much of law and the legal system as essentially irrelevant to the process of technological evolution. This view takes as axiomatic that the rate technological change is always accelerating, that any firm or institution dependent on a given technology is therefore doomed to a rapid obsolescence. Law, at best, risks interfering with a natural progression toward a better technological future, hindering “the march of civilization.”

This paper discusses the historical role of antitrust investigation in changing the course of technological development by focusing on the example of the IBM litigation (1969 - 1984). While widely …

Long-Term Bias, Eric L. Talley, Michal Barzuza

Faculty Scholarship

An emerging consensus in certain legal, business, and scholarly communities maintains that corporate managers are pressured unduly into chasing short-term gains at the expense of superior long-term prospects. The forces inducing managerial myopia are easy to spot, typically embodied by activist hedge funds and Wall Street gadflies with outsized appetites for next quarter’s earnings. Warnings about the dangers of “short termism” have become so well established, in fact, that they are now driving changes to mainstream practice, as courts, regulators and practitioners fashion legal and transactional constraints designed to insulate firms and managers from the influence of investor short-termism. This …

Short And Distort, Joshua Mitts

Faculty Scholarship

Pseudonymous attacks on public companies are followed by stock price declines and sharp reversals. These patterns are likely driven by manipulative stock options trading by pseudonymous authors. Among 1,720 pseudonymous attacks on mid- and large-cap firms from 2010 to 2017, I identify over $20.1 billion in mispricing. Reputation theory suggests these reversals persist because pseudonymity allows manipulators to switch identities without accountability.

The End Of Antitrust History Revisited, Lina M. Khan

Faculty Scholarship

This Review engages Tim Wu’s book, The Curse of Bigness, to explain the significance of the current rupture in antitrust and to situate it within a broader intellectual trajectory. Debates over the foundational purpose of antitrust are not new, and examining how this latest clash fits alongside previous contestations is essential for understanding what has yielded the current contestability and assessing the competing visions.

Part I of this Review summarizes Wu’s chief contributions in his recent work, focusing on three tenets that form the basis of the book. Part II offers an analytic breakdown of the overhaul in antitrust …

Taking Compliance Seriously, John Armour, Jeffrey N. Gordon, Geeyoung Min

Faculty Scholarship

How can we ensure corporations play by the “rules of the game” – that is, laws encouraging firms to avoid socially harmful conduct? Corporate compliance programs play a central role in society’s current response. Prosecutors give firms incentives – through discounts to penalties – to implement compliance programs that guide and monitor employees’ behavior. However, focusing on the incentives of firms overlooks the perspective of managers, who decide how much firms invest in compliance.

We show that stock-based pay, ubiquitous for corporate executives, creates systematic incentives to short-change compliance. Compliance is a long-term investment for firms, whereas managers’ time horizon …

Building A Law-And-Political-Economy Framework: Beyond The Twentieth-Century Synthesis, Jedediah S. Purdy, David Singh Grewal, Amy Kapczynski, K. Sabeel Rahman

Faculty Scholarship

We live in a time of interrelated crises. Economic inequality and precarity, and crises of democracy, climate change, and more raise significant challenges for legal scholarship and thought. “Neoliberal” premises undergird many fields of law and have helped authorize policies and practices that reaffirm the inequities of the current era. In particular, market efficiency, neutrality, and formal equality have rendered key kinds of power invisible, and generated a skepticism of democratic politics. The result of these presumptions is what we call the “Twentieth-Century Synthesis”: a pervasive view of law that encases “the market” from claims of justice and conceals it …

Democracy & Religion: Some Variations & Hard Questions, Kent Greenawalt

Faculty Scholarship

The ideas sketched here concern the nonestablishment and free exercise norms expressed in the U.S. Constitution, their application to governmental institutions from legislatures to prisons and the military, the place of religion in the curricula of public schools, and the proper role of religious convictions in lawmaking. A major concern of the essay is the problem of achieving an appropriate balance between governmental neutrality toward religion, as required by the nonestablishment norm, and governmental accommodation of religious practices that would otherwise violate ordinary laws, as required by the free exercise norm. A recurring theme is the complexity of the issues …

Picking The Low-Hanging Fruit: A Short Essay For Michael Klausner, Ronald J. Gilson

Faculty Scholarship

The articles that comprise this issue of the Journal of Corporation Law were first presented at a conference held at the Wharton School and co-sponsored by Wharton together with Columbia and Stanford Law Schools. The event was organized by my friend Peter Conti-Brown, to whom I am grateful for both the thought and the effort. Standing alone, the thought that the conference was warranted would have been extremely generous. However, anyone who has organized a conference knows that the idea for such events can be exciting, but what follows is an amount of work that had it been anticipated would …

Holmes's Understanding Of His Clear-And-Present-Danger Test: Why Exactly Did He Require Imminence?, Vincent A. Blasi

Faculty Scholarship

For all the suggestiveness and staying power of his market-in-ideas metaphor, Justice Oliver Wendell Holmes’s most significant influence on First Amendment law has turned out to be his notion that only imminent harm can justify punishment for expressions of opinion. This emphasis on the time dimension in the calculus of harm is now entrenched in modern doctrine. It is easy to imagine how First Amendment law might have developed differently had Holmes’s peculiar focus on imminence not been a factor in shaping how the freedom of speech has come to be understood in the United States.

Global Investor Protection: Securities Law Enforcement Around The World, Matthew Diller, Martin Gelter, Eugenio J. Cardenas, Merritt B. Fox, Geoffrey Jarvis, Pierre-Henri Conac, Todd Cosenza, Jill Fisch, Yuliya Guseva, Elad Roisman, Sean Griffith

Faculty Scholarship

Today's topic is a great one – one that is of central importance to the fairness of our markets and their integrity. The Securities and Exchange Commission (SEC) and the U.S. system of protecting the integrity of capital markets have long been seen as the gold standard. But does that continue to be true? Are there other systems and models that are, in fact, better than what we do here in the United States? We, of course, are filled with flaws and shortcomings of our own.

The Paradox Of Legal Training And Leadership: A Conversation Between Akilah Folami And Susan Sturm, Akilah Folami, Susan P. Sturm

Faculty Scholarship

Professor Akilah Folami:
Welcome and thank you for coming. I am eager to engage in this opening exchange with Susan Sturm today in hopes that it will help bring to surface some of the issues that undergird the conversations planned for today in the panels. So let us begin. Susan has been teasing out a series of paradoxes that she argues develops in the tensions built into lawyer-leadership, i.e., legal training and leadership development. Her work on these lawyer-leadership paradoxes grows out of her other work that is related to the theme of this conference: Leading Differently Across Difference. She …

Summary: Combating Climate Change With Section 115 Of The Clean Air Act, Jonathan Cannon, Ann E. Carlson, Greg Dotson, Michael B. Gerrard, Justin Gundlach, Jayni Foley Hein, Cale Jaffe, Michael A. Livermore, Jason A. Schwartz, Daniel Selmi, Jessica A. Wentz, Philip S. Barnett, Keith J. Benes, Alexandra E. Teitz

Faculty Scholarship

The scale and scope of the climate crisis calls for comprehensive nationwide efforts to reduce greenhouse gas emissions. New legislation, passed by Congress and signed by the President, is the first and best option for climate action at the federal level. This could be a version of the Green New Deal, a carbon tax, sectoral limits, an emissions cap with compliance trading, or another approach. What matters most is that the legislation effectively cut the greenhouse gas emissions driving the world’s temperatures ever higher. Unfortunately, the prospect for federal legislation is uncertain, while strong and decisive action is needed now. …

On Trust, Law, And Expecting The Worst, Elizabeth F. Emens

Faculty Scholarship

This Review has three parts. Part I aims to convey something of the breadth and interest of Hasday’s fascinating new book, foregrounding the role of gender and beginning to touch the subject of trust. Part II delves briefly but widely into the theme of trust, which pervades the book and invites further examination. Part III presents a framework that combines affective trust and epistemic curiosity and applies this framework to illuminate and sort Hasday’s proposals for reform; to critique a recent, dramatic change in the evidentiary treatment of marital confidences; and to devise a novel approach to prenuptial agreements. Throughout, …